Southern Calif-US military spending cuts-Estimate is that 336,000 defense related jobs will be lost
Sequestration Plus Earlier Mandated Defense Cuts to Hit California Hard in Next 8 Years; State Will Lose 336,000 Defense-Related Jobs, $21 Billion in Economic Output and $6.9 Billion in Personal Earnings
California Faces Double Whammy: $7 Billion in Already Mandated Cuts; Additional $4 Billion in Potential Sequestration Cuts
California will be hit hard by sequestration, the automatic spending cuts in the federal budget set to go into effect January 1, 2013 unless Congress agrees on a plan by year end to reduce the federal deficit by more than $1 trillion. If sequestration goes forward, combined with the earlier mandated cuts to the Department of Defense, the state will lose 336,000 defense-related jobs, $21 billion in economic output and $6.9 billion in personal earnings over the next eight years, according to a new study released today by the Southern California Leadership Council and the Southwest Defense Alliance. Sequestration will account for 136,000 of these lost jobs, $7.5 billion in reduced economic output and $2.4 billion in lower personal earnings, the study revealed.
Sequestration calls for $1.2 trillion in spending reductions from fiscal years 2013 through 2021 from both defense and non-defense departments. However, defense spending will be disproportionately affected. The Department of Defense accounts for 19% of the federal budget but is slated to take 50% of the required sequestration cuts, meaning that the Pentagon must cut $492 billion in military spending over the next 10 years. This is on top of the $487 billion already set to be cut from the defense budget over the same decade.
"California will be pummeled once again by severe defense cutbacks just as we are trying to get back on our feet from the recession," said Pete Wilson, former California Governor and U.S. Senator who served on the Senate Armed Services Committee. "California can't afford to lose one more job. Even more important, our country can't afford to lose military preparedness.